On January 1, 2013, Race Corp

question 126

Multiple Choice

On January 1, 2013, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $450,000 goods which cost $330,000. Gallow still owned 15% of the goods at year-end. Gallow's reported net income was $204,000, and Race's net income was $806,000. Race decided to use the equity method to account for this investment. What was the non-controlling interest's share of consolidated net income?

• A) $3,600.
• B) $22,800.
• C) $30,900.
• D) $32,900.
• E) $40,800.

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Definitions:

Protocol Procedures

Established sequences of actions or methods to be followed in specific professional or official situations.

Civility Enforcement

Measures or practices implemented to ensure respectful and polite behavior in a particular context or community.

Business Attire

The standard clothing expected in professional and corporate environments, often including suits, formal dresses, or other professional wear.

Dining Etiquette

The set of rules and standards governing the expected behaviors and manners while eating, especially in formal settings or social dining situations.